France May Be Next Domino To Fall In Financial Crisis

German economists (always looking at the bottom-line) are now warning that France may be the next country to see it’s AAA credit rating to go. Part of it is because France is helping to bailout Greece. “A new bailout package for debt-stricken countries in the southern part of the [European] currency union will also strain French state finances,” Commerzbank chief economist Jorg Kramer told a newspaper. But the problem is also the result of weak French banks, which are heavily in debt. They hold a lot of Greek debt, and the French government is heavily in debt. It’s overall debt is 86% of GDP (which puts it on par with the United States.)

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